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Webinar logistics

INDIGENOUS FINANCIAL WELLNESSWebinar

June 19, 2017

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Overview

1. Who we are: AFOA Canada and Prosper Canada

2. Financial wellness and its determinants

3. Opportunities to build financial wellness

4. Principles and effective practice

5. Resources

All images courtesy of Simon Brascoupé4

1. Who we are5

AFOA Canada

VisionAFOA Canada is the centre for excellence, information and certification in Aboriginal management

MissionBuilding management proficiency and connections that enhance effective Aboriginal governance, administration, and self-reliance.

Education and training programs

• Indigenous Financial Literacy and Wellness

• Community Capacity Building Workshops

• Aboriginal Financial Managers Certification

• Aboriginal Professional Administrators Certification

• Journal of Aboriginal Management

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Founded in 1986, Prosper Canada is a national charity dedicated to expanding economic opportunity for Canadians living in poverty through program and policy innovation.

As Canada’s leading champion of financial empowerment, we work with government, business and community partners to develop and promote financial policies, programs and resources that transform lives and foster the prosperity of all Canadians.

We help service systems and organizations in all sectors to build proven financial empowerment approaches into their businesses in ways that:

• Are sustainable• Help them achieve their goals• Tangibly increase the financial well-being of low-income people they serve.

Prosper Canada

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2. Financial wellness and its determinants8

Financial wellness is understood by Indigenous Peoples to be…

The continuous process of balancing

income, saving, investing and spending

to achieve one’s life goals (physical,

emotional, mental and spiritual) over

the life cycle, and to maintain a state of

wellness for individuals, family and

community.

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Indigenous Financial Wellness Framework

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3. Opportunities to build financial wellness11

Context is different on and off reserve

Urban

• Income is taxed• Better access to income tax

preparers • More access to banks • ID can still be a barrier• Average income higher than on

reserve• Education, employment and health

indicators stronger than on-reserve but below Canadian averages

On reserve

• Income not taxable on reserve• Low tax filing rates and

income tax preparation is a challenge

• No local banks in most cases• ID can be a barrier• Average income low • Education, employment,

health indicators significantly below Canadian averages

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Opportunity: Boost access to income benefits

• Unaware of benefits

• Worried they might owe CRA money

• Complexity (tax system and forms)

• English as a second language/literacy and

numeracy

• No secure computer access

• Difficulty assembling paperwork

• Mistrust of government

• Lack of confidence.

An estimated 30-40% of First Nations individuals miss out on important income

benefits because they don’t tax file – e.g. $350M+ in Canada Child Benefits

Barriers Opportunity

• Expanding access to benefits is a federal gov’t priority

• Rising First Nations awareness and interest – more in the south addressing this issue with tax preparation supports

• Prosper Canada and AFOA collaborating to promote opportunity, but local capacity and access to non-profit and gov’t supports to help screen people for benefits and tax file or apply can be an issue

• We are working to pilot new approaches with CRA volunteer program and others 13

Opportunity: Build savings

• Few or no local financial institutions

• Many people unbanked/underbanked

• Low financial literacy

• Low income

• Precarious/volatile income makes it hard

to save

• Sharing prioritized over saving

20% of Indigenous people don’t know how they will finance their retirement and

16% are counting on government assistance alone.

Barriers OpportunityBuilding emergency savings a priority under Canada’s Financial Literacy Strategy

Financial education combined with apps and online tools can help people save

SmartSaver offers help with education savings.

Innovative tax time savings interventions can help people turn tax refunds into emergency or longer term savings.

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Opportunity: Expand access to banking services

• Few local banks/credit unions

• Alternative services costly (Northern Store)

• Lack of I.D. an issue for many people

• Have to open accounts in person and travel

costs can be prohibitive

• Poor internet makes online banking hard

Only 4 First Nations have a bank on reserve and many communities are forced to

rely on informal, high cost and/or predatory financial products and services

Barriers Opportunity

• Banks interested in serving growing Indigenous market and related partnerships

• Fintech may open up secure alternatives to “in person” requirement to open an account

• Vouching and services to help people get IDs can reduce this barrier

• Federal gov’t expanding high-speed internet to more rural/remote communities

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Employers can also help reduce financial stress

• Include financial education and counselling in Employee Assistance Plans where these exist

• Maintain an emergency loan fund to give employees an alternative to payday loans (especially if they have uneven work schedules/pay cheques)

• Organize an annual workplace tax clinic to help low and modest-income employees tax file and access new income

• Offer benefit screening to see if employees are eligible for other income benefits they are not receiving (i.e. Canada Child Benefit)

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On-boarding is a “golden moment”…

• Ensure new employee has a bank account and help them open one if they don’t

• Set up direct deposit to prevent costly cheque cashing fees

• Facilitate automated savings through payroll using opt-out (emergency saving and/or

retirement)

• Incentivize employee savings if they can afford it

• Provide RESP/Cda. Learning Bond info if they have kids 0-17 years

www.indigenousfutures.ca

• Provide RDSP info if employee or a family member has a disability (www.rdsp.com)

• Provide info on income benefits available to Indigenous Canadians and encourage them to

consider tax filing if they haven’t done so (unless they fear garnishment for debts)17

First Nations Financial Wellness Project

1. Education 3. Access2. SupportFinancial Wellness

Workshops that provide tools and knowledge needed manage money

One-on-one coaching to help people reach their financial goals

Help accessing income benefits, banking services & opportunities to save

Building sustainable capacity in communities to provide:

Supported by Ontario Trillium Foundation and TD Bank Group For more information: www.prospercanada.org18

Program framework pivot

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• Initial approach exceeded available community capacity

• Full coaching model was challenging at this stage however we have seen interest in providing one-on-one financial information

• More limited ACCESS interventions with more specific goals resonated more and were easier to integrate

4. Principles and effective practice20

Principles when working with First Nations

Partnership: Work collaboratively. Take the time to develop trust, safety, etc.

Cultural safety: Provide education, support and access that is culturally relevant and safe

Respectful: Build mutual respect, trust and understanding

Knowledge-based: Two-eyed seeing approach uses both Indigenous and western knowledge in finding solutions

Supportive: Support First Nations partners' community interest.

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The Healing Path Talk

Listen and learn

Healing path

Healed

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Key learning: Allow time for engagement/learning and identifying resources needed to implement a new service

• Engaging communities and partners is a critical process that takes time: Partnership development, community engagement, and planning

are critical stages that may take longer than anticipated.

• Partners need time to develop knowledge and skills needed to deliver programs with confidence: It is important to start where people are

at. While some community staff have significant experience, others will need to build upon their own financial wellness and literacy

understanding, and the skills to share this knowledge with community members (e.g. workshop facilitation, program planning). Opportunities

to practice are key to help build skills and confidence.

• Organizations leading programs will have their own learning curve – It takes time to build relationships within each community and to

understand its unique needs, challenges, values and contexts, as well as the services that already exist, how these operate in the community

and how they relate to new financial empowerment efforts. Community partners are experts in the needs of their communities and best

practices for programs in their community.

• There is little excess capacity in communities to take on major new initiatives unless they are properly resourced – Participating in the

development of new services is a significant commitment for every community, but even more challenging if no additional resources are

provided to offset the extra demands placed on participating staff and community members.

• In communities with multiple challenges, these can often take priority. Communities may express strong interest and need, but when they

are grappling with other priorities/challenges these, at times, will take precedence over other less urgent needs.

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5. Resources 24

Retirement Planning | AFOA Canada Podcast

https://www.youtube.com/watch?v=ZO5M49pzKZo

Capacity Building Workshop(8 modules)

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CRA: Tax filing assistance

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Indigenous Futures: Help to open RESPs

http://www.indigenousfutures.ca/

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PLAN: Help to open RDSPs

http://www.rdsp.com/

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Prosper Canada: Financial education training

http://www.prospercanada.org/Our-Work/Centre-for-Financial-Literacy/Training.aspx

On-line and in-person training for financial educators and coaches

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Open Policy: Low Income Retirement Planning

http://openpolicyontario.com/wp/wp-content/uploads/2016/09/LowIncome-GIS-booklet-Final_web.pdf

A guide for people with low incomes to help them plan and make key decisions for their retirement

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Discussion

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Thank you for joining us

• We will be sending you an email soon with:

• Slides from today’s webinar

• Links to webinar recording

• Link to post webinar survey - please tell us your feedback

• We will post the recorded webinar at www.prospercanada.org under ‘Resources’

• Please join our mailing list

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MiigwetchNia:wenThanksMerci

Elizabeth MulhollandChief Executive OfficerProsper CanadaTel: (416) 665-2828 Ext. 2229Toll-free: 1 (877) 568-1571lmulholland@prospercanada.orgwww.prospercanada.org

Simon BrascoupéVice President, Education and TrainingAFOA CanadaTel: (613) 722-5543 Ext. 114Toll-free: (866) 722-AFOA (2362)sbrascoupe@afoa.cawww.afoa.ca

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